Online fraud detection spend to hit $9.2 billion by 2020
eCommerce merchants and financial institutions will be investing heavily in online fraud detection solutions over the next five years, with annual spending reaching $9.2 billion by 2020, up by 30% on current levels, according to Juniper Research.
Rapid growth of mobile fraud
According to the research, fraudsters now perceive mobile payment channels to be particularly vulnerable (and therefore attractive targets) as many organisations have yet to apply the same levels of protection to mobile as they have to desktop transactions.
“Digital security companies regard the mitigation of mobile fraud as a key revenue generator in the medium term,” claimed report author Gareth Owen. He argued that this was driving the development and implementation of advanced biometric authentication technologies which the companies claim can make mobile purchases as secure as any other web-based transactions.
Leading fraud detection and prevention players
As part of its research, Juniper conducted a comparative assessment of 12 solution vendors based on a range of criteria including technological innovation, fraud detection performance, product range and strength of partnerships.
The study identified the following companies as the leading 3 players in the FDP (Fraud Detection and Prevention) space: CyberSource, Experian, and FICO.
All three companies demonstrated significantly higher performance than their peers in their data analytics capability and their ability to monitor fraud across multiple payment channels (including mobile) and the use of global threat intelligence networks.